With all the drama surrounding the Ukraine it seems somewhat absurd that the Asian markets can shrug off those developments and push up into the green tonight. But maybe they know something we do not know. Perhaps a Russian takeover of the Crimea is not such a bad thing...in worldwide events. Unless, of course, our U.S. government refuses to resist the temptation to pull out the "big guns" in response!
Silver and gold prices will tell us what it all means!
EXK looks to the price of silver for higher moves in stock price. And silver, as well as gold, are paying a lot more attention to geopolitical tensions in the world. Front and center is the upcoming Sunday referendum vote in the Crimea which everyone realizes will reflect the region's intention to withdraw from the Ukraine and join the Russian Federation. But more worrisome will be the reaction of the U.S. and Europe. And that unknown "worry" should continue to drive up silver and gold prices.
So the rally in metal prices should continue through Friday's close....if not well beyond. Consequently, EXK as volatile as this stock's share price is.....should be higher at Friday's close. But after today's huge 10.7% rise, who knows whether there might be some profit taking tomorrow. GLTA
What EXK needs is a really good boost to silver prices! Which is something beyond EXK's control. But silver prices certainly have room to move on the upside. Time will tell.
It looks like EXK started seriously heading downwards today shortly after the conference call. Did anyone listen to Brad today? Apparently some big investors did not like what they heard.
With world tensions so high, one would expect the tradtitional safety hedges to ignite...gold and silver. But we are in a new era where everyone expects the Fed to backstop every contingency, apparently including armegedon. Throw out the safe havens! Geopolitical nightmares of current varieties can be dispelled with more QE, if necessary!
Hey, Bill! Down 12% in 2 days seems like a bit of overkill. Yeah, silver is down 3% today but that is overdone as well.
EXK has been on a rocket ride since the beginning of the year and some short corrections should be expected along the way. But...12% in 2 days??? My guess is that a consolidation might occur however volatility will more likely be the name of the game. I still expect an upward bias over the short and medium terms with a lot of bouncing around in price. Anyone else think EXK will breach $6/sh within the next month?
EXK is only $.81 away from reaching it's 52 week high. Certainly hitting that number would not make the earth shake but it would be a decent milestone and perhaps trigger some added technical buying. Will EXK hit a new 52 week high next week? I'm not holding my breath but recent price increases on heavy share volume suggest the upward momentum will continue. As long as the dollar doesn't suddenly bolt higher (central banks always have their devious manipulation strategies in play), silver and gold should continue hitting higher highs and higher lows. Good for EXK!
GLTA and have a good weekend!
Silver is currently up 2 cents but the miners are down 2% or more. And the dollar is levitating higher. Is there any viable reason for this?
Our new and enlightened Federal Reserve Chairperson is calming the speculative Mainstream traders with her performance before the House yesterday and the Senate today. It seems that those Wall Street gamblers after listening the Chairperson preach to Congress have come to believe Yellen can put their old game back into play. She sounds so much like their previous idol, "Gentle" Ben Bernanke. And now they see she can sing the same songs that Bernanke was doing so well at doing. And so, taking a cue from Yellen's seemingly confidence in controlling the game, the old market practices based upon the Federal Reserve "put" have come back into play. And my take is that this renewed effort to keep the old game going will last until the end of the day...as in today.
So I offer another one of my mindless predictions. Starting tomorrow, or perhaps Friday, reality will set back in. Gold will visit some number above $1300/oz and EXK will recover all of today's losses and push higher. Time will tell. And notice! We just got confirmation that our Congress still has no respect for debt ceilings and endless credit expansion is something we can all enjoy....from one election cycle to the next. GLTA
Gold finished the trading day at $1274. I can't even recall the number of gold market technicians and pundits who have predicted that a close above $1270 would then require shorts to cover plus trigger buy programs of all sorts that would push gold up to $1325 in a hurry. And if that actually happens, silver will definitely come along for the ride. (Regardless, the silver/gold ratio is way out of whack and is due to improve in any event).
Can Yellen's testimony before the House tomorrow impact PM prices? One never knows, but it certainly seems like the stars are aligning for PM prices to continue their upward drive. Obviously, that would be great for EXK!
Obviously, don't make a decision based on a MB poster like a frivolous day dreamer such as myself. But I'm suggesting EXK will visit $5/sh by Wednesday's close if not a much higher price. And why? I'm guessing the markets will digest the unimpressive job numbers over the weekend and conclude that the economy is flailing in the wind and more Fed Reserve free fiat may need to be injected even though there isn't a whole lotta hope that it will do any good.
Secondly, the debt ceiling has not been resolved and the credit rating agencies are hanging like bats in the belfry waiting to downgrade U.S. debt which obviously will impact the dollar negatively. That will catapult PM prices higher....good for EXK.
Thirdly, the COMEX is running very low on physical and February is notorious for heavy withdrawals from the COMEX. PM prices could explode upwards.
And, finally. The beginning of each week since the start of the year seems to have been favorable to silver and gold prices. We shall see if history repeats.
As for day traders...EXK has become rather volatile with an upward bias. So if EXK jumps 10% or more, one might consider harvesting some profits on trading shares with a buy back on follow up 5% declines. But then again...who knows for sure. Keep an eye on the price of silver. EXK will not suffer declines with rising silver prices. GLTA
It just dawned on me! On Friday, we not only have the release of the monthly BLS report on the unemployment rate in the U.S. But we also have the deadline on the Federal debt ceiling. Surely those good stewards of our government sitting in their congressional offices in Washington D.C. realize our country has already spent the future tax revenues of our children, grandchildren, and great grandchildren.
So what is left to spend? "RELEASE THE KRAKEN!"
Sweep the god-awful debt ceiling under the carpet and raise our credit limit somewhere beyond Mars. As that economically gifted former vice president was always humming, "deficits don't matter"...and consequently #$%$ Cheney has become the most beloved Republican by Democrats of every stripe today.
So many people have needs...free health care, food stamps,student loans, free pay after losing a job for more than 6 months, etc, etc. The military has so many needs for new toys and military adventures. If you simply "need" something, then the government will pay for it. It's like we run our government using the slogan, "Eat, drink, and be merry...for tomorrow we may die."
If you think it's hard to put the cats back in the bag, just wait until we have to stuff the "Kraken" back into where he came from! Free credit is great....until it is not!
And so what's my point? Friday and beyond should play out very well for silver, gold, and EXK
One week from today we get the headline monthly unemployment rate published by the BLS. The unemployment rate is expected to go down several tenths of a percentage point since 1.7 million people were axed from long term unemployment benefits. Typically, significant changes in the unemployment rate move currency and PM markets. However, how long will the public attach any relevance to a much manipulated number , especially with crashing disposable incomes.
But if the reported unemployment rate drops several tenths of a percent, won't the Federal Reserve be locked into continued tapering steps regardless of falling EM stock markets as well as G7 markets? Reactions to next Friday's unemployment figure should prove to be very interesting. For what it is worth, I don't believe a falling unemployment rate or continued tapering will negatively impact precious metals prices. If stockholders are rushing to the exits and dumping stocks en mass, do they rush to bonds with their new found cash or do they seek higher ground with silver and gold. Only time will tell but I'm hanging onto my core position of EXK for now.
U.S. workforce is shrinking. And today we find out that the "disposable income" of those remaining in the workforce....is crashing lower.
Headline: "Real Disposable Income Plummets Most In 40 Years".
"...when real disposable personal income drops by 0.2% from a month earlier, and plummets by 2.7% from a year ago, the biggest collapse since the semi-depression in 1974, something is wrong with the US consumer." -- Zero Hedge
And just exactly what do those Ivy League economists at the Federal Reserve base their 2014 predictions suggesting an improving economy??? And why does John Q. Public continue to buy those myopic predictions??? Because if the truth was revealed by the powers that be, we serfs would become frightened about the future, start saving for hard times, and stop applying for credit to buy things we don't need (which now keeps the economy rolling along albeit in slow gear). And then the big banker boys would lose their million dollar bonus checks.
Please please, Federal Reserve. Print up lots more free money. That will keep us buying. And don't worry about rising silver and gold prices. They're just barbarous relics.
Perhaps EXK has decided to curtail improvements to increased production levels in retaliation to new Mexican mining taxes. Perhaps they have slowed down expansion due to lower silver prices (temporary in time). But EXK has just announced they are no longer a growth mining operation but obviously they are a solid mid-tier miner with lower than average production costs. Nevertheless, how will investors view this transition? Hopefully rising silver prices will drive stock price higher. But the company has told us not to expect higher production output which we have experienced over the last umpteen quarters.
My take....rising silver prices will eventually result in ever increasing EXK silver output. EXK's stock price may level out on the short term but still maintains a great reputation for solid production and with any rise in silver prices will definitely propel EXK's stock price higher. Time will tell. GLTA
Blade. Perhaps you should just enjoy the ride up to $5...if we can get there. If EXK hits $5 by mid February, it would represent a 30% rise since Jan 15th. That is a huge gain for a month's trading but, of course, it may happen, and it may not. If it does not, then you've made your profits on the covered calls and you keep your shares. If $5 gets hit/exercised....just reload at that time. It's all money up to $5 so why not sit back and enjoy the ride? GLTU
EXK, like many of it's silver miner brothers, is in the green today even though the price of silver is significantly down. EXK seems to be shining above the others with presently a 3.49% rise on the day. Nice.
Regardless, it makes one wonder what investors are seeing in the miners as the physicals falter. I suggest it could be a nice indicator of what is to come. Perhaps PM equity investors have grown tired of manipulation of physical prices which should soon draw to a close. GLTA
The COMEX currently has future contracts covering 1232 tons of gold but only 11 tons of physical gold available for delivery. February of last year was a huge month whereby 40 tons of gold was "delivered" via the COMEX rather than rolling the paper over. The Comex now stands at record low physical gold available for delivery. Eric Sprott in a KWN article suggests there is a fair chance the COMEX will suffer a "failure to deliver" in the next couple of months....which would be huge for silver and gold prices in jumping higher.
Time will only tell but things are definitely looking up with the London price setting "fixes" now coming under fire for "manipulation" and Deutsche Bank jumping out of the mix.
Just when we thought we've figured out all the reasons for PM's to rise in coming months, here's another reason from Stewart Thomson (321gold):
"Please click here now . This weekly chart of GDXJ looks superb. There’s an even bigger wedge pattern in play, and a major stokeillator buy signal.
A rise towards HSR in the $55 area is easily possible, and the size of the wedge pattern suggests that an even bigger rally, towards $70, is a realistic target.
In the world of inelastic gold demand, the “big boys” are the citizens of India. National elections are being held there in the spring. Does the current bullish technical posture of many junior gold stock charts suggest that institutions are beginning to flow liquidity into gold stocks, anticipating a Narendra “pro gold” Modi win? I think so. "